TRENTON APPROVES BILL OVERHAULING WELFARE SYSTEM

By JENNIFER PRESTON

Published: February 21, 1997

TRENTON, Feb. 20—
The New Jersey General Assembly approved legislation today to overhaul the state's welfare program, imposing time limits and work requirements on welfare recipients, but also offering incentives to help ease their transition into the workplace.

The legislation, proposed by Gov. Christine Todd Whitman, closely resembles the new Federal welfare law, but softens some of the strictest provisions. The plan would impose a five-year lifetime limit on cash benefits; however, it would extend the time limit by one year in some cases. For example, individuals who lose their job through no fault of their own could receive an extension.

The plan would continue cash benefits and Medicaid coverage to legal immigrants, even though the Federal Government no longer requires such benefits to be provided.

While New York State is just starting what all sides expect will be a protracted debate over changes in welfare, New Jersey expects to have its program up and running next month.

With little debate, the Assembly voted overwhelmingly in support of two welfare measures today. The State Senate has already approved the broad outlines of both bills, but must approve minor revisions next month before they head to Governor Whitman for her signature.

The State Legislature, controlled by Republicans in both houses, approved two related bills with bipartisan support late last year. Governor Whitman signed them into law last month.

State officials adopted emergency regulations on Jan. 30 to begin putting the administration's plan into effect rather than risk losing millions in Federal money. Once the legislation approved today is signed by Mrs. Whitman, the state will put the program into effect, including starting the five-year lifetime limit on cash benefits.

Under the plan, welfare recipients would be required to find jobs within two years or risk losing benefits. Teen-age mothers receiving cash benefits would have to finish high school and live with a parent or a guardian. Those who violate their parole would lose their benefits. Anyone applying for welfare benefits would have to provide information to assist the state in collecting child support payments.

To help ease the transition into the workplace, the legislation outlines plans to provide subsidized child care for at least two years after a welfare recipient has found a job, and calls for other support services, like vouchers for transportation, and job training and job placement programs.

In addition, New Jersey would allow welfare recipients to keep more of their benefits once they began working, and to continue to be eligible for Medicaid coverage two years after recipients have moved into the workplace, unless an employer offers health benefits.

The current cost of the welfare program to New Jersey is $1 billion a year, which does not include Medicaid. That figure would remain the same, and would include the cost of child care and other incentives.

The amendment added to the Assembly bill, which is expected to win approval in the Senate next month, would also entitle welfare recipients working in community or alternative work programs to be entitled to the same workers' compensation coverage as the rest of the work force.

''Work First New Jersey places a strong emphasis on work and personal responsibility, yet provides support for those who truly need it, particularly in the area of child care,'' said Assemblywoman Charlotte Vandervalk, a Republican from Bergen County, one of the bill's prime sponsors. ''We have recognized the strong need for child care in welfare reform, and we have made a real commitment by doubling the amount of expenditures going into day care services.''

State officials said 107,000 families and 33,000 single adults are receiving welfare cash benefits in New Jersey. While everyone faces the prospect of a five-year time limit on cash benefits, the state will make hardship exceptions for up to 20 percent of the welfare caseload, as allowed under Federal law. In addition, two six-month extensions could be granted on an individual basis.

New Jersey avoided many of the strict provisions of other states, like the the 21-month time limit for welfare recipients that was put into effect last year in Connecticut. Unlike legislation proposed late last year by Gov. George E. Pataki of New York, New Jersey's bill will not reduce benefits for families or eliminate cash benefits for childless couples or single adults.

In his plan, Governor Pataki has proposed scaling back benefits for families on welfare by 10 percent after 18 months. Benefits would continue to decrease until they are 45 percent lower than current levels, when the families reach the five-year time limit. His plan would also end cash benefits for all able-bodied people not eligible for the family program. Instead, he would create a $1.2 billion block grant to local governments to set up a voucher system to help with food, clothing and shelter.

Mr. Pataki, like Mrs. Whitman, has proposed continuing welfare cash benefits and Medicaid coverage to legal immigrants, even though the new Federal welfare law said that states were no longer required to continue such benefits. Governor Pataki urged Congress last month to reconsider the new Federal welfare law's provisions limiting benefits on legal immigrants, but it does not appear that Congress will reconsider the issue soon.

In New Jersey, state officials said it would cost $59 million a year to continue cash benefits to 15,000 families who are legal immigrants, and $100 million in state money to continue Medicaid coverage for 50,000 legal immigrants, including many elderly people in nursing homes.

New Jersey, however, will not step in to pick up the cost of other Federal benefits that have been eliminated for legal immigrants, like food stamps and Supplemental Security Income. Officials said the cost of the programs would be prohibitive.

In a statement, Governor Whitman said that her program would impose realistic time limits on those receiving welfare benefits. ''It will require both parents to take financial responsibility for their children, and will provide adequate incentives to enable welfare recipients to meet our expectation that they will get and keep a job,'' she said.

Ciro A. Scalera, executive director of the Association for Children of New Jersey, a child advocacy organization, said he thought that the Whitman administration and the Legislature did the best possible job they could within the constraints of the new Federal welfare law.

''I am pleased with where New Jersey has ended up on welfare reform,'' Mr. Scalera said. ''I think that the Whitman administration took a fairly rigid Federal law and produced a set of policies that are designed to provide as smooth a transition as could be reasonably expected.''

Photo: Assemblywoman Charlotte Vandervalk, a sponsor of the welfare legislation, talking with legislators and lobbyists yesterday in Trenton. The Legislature passed the bill and sent it to Gov. Christine Todd Whitman. (Laura Pedrick for The New York Times)(pg. B2)